How to Calculate Payouts When Betting on Sports 2025
Author
Last Updated: 11 July, 2025
A payout is the money you get back when you win a bet. It includes:
Your winnings (the profit)
Your original bet amount
Example:
If you bet $100 at +200 odds and win:
You win $200 in profit
You also get your $100 back
So your total payout is $300
The payout depends on how much you bet and the odds at the time.
Betting on sports adds an extra layer of excitement to any game, but understanding how to calculate your potential payouts is crucial for making informed bets.
Whether you're a seasoned bettor or just starting, knowing the ins and outs of odds and payouts can significantly impact your overall experience and success.
In this article, we'll break down the essential steps to calculate payouts, demystify betting odds, and provide practical examples to help you navigate the world of sports betting with confidence.
Understanding odds
Odds are the cornerstone of sports betting, representing the probability of an event occurring and determining the potential payout.
There are three main types of odds used in sports betting:
1. American Odds
American odds are either positive or negative and are primarily used in the United States.
Positive Odds: These indicate how much profit you would make on a $100 bet. For example, if the odds are +150, a $100 bet would yield a $150 profit, plus the return of your initial $100 stake, totaling $250.
Negative Odds: These show how much you need to bet to make a $100 profit. For example, if the odds are -200, you would need to bet $200 to make a $100 profit, plus the return of your $200 stake, totaling $300.
2. Decimal Odds
Decimal odds are common in Europe, Canada, and Australia. They represent the total payout (including the stake) per unit bet. For example, if the odds are 2.50, a $100 bet would return $250 (2.50 * $100).
3. Fractional Odds
Fractional odds are traditional in the UK and Ireland. They represent the profit relative to the stake. For example, if the odds are 3/1, a $100 bet would yield a $300 profit, plus the return of your $100 stake, totaling $400.
Understanding Implied Probability (and estimating payouts easily)
Every set of odds reflects the sportsbook’s estimation of how likely an event is to happen; this is called implied probability.
It also determines how much you stand to win on a bet.
You can calculate this manually, or just get a quick estimate with a few simple rules of thumb.
What is Implied Probability?
Implied probability is the percentage chance that a team or player will win, based on the odds.
Understanding it helps you spot value bets, especially when you believe the actual chance is higher than what the odds suggest.
Here’s how it works for different odds formats:
1. American Odds
Positive odds (e.g., +150)
Implied probability = 100 ÷ (odds + 100)
Example: +150 → 100 ÷ (150 + 100) = 33.3%
Negative odds (e.g., -200)
Implied probability = |odds| ÷ (|odds| + 100)
Example: -200 → 200 ÷ (200 + 100) = 66.7%
2. Decimal Odds (e.g., 2.50)
Implied probability = 1 ÷ decimal odds
Example: 2.50 → 1 ÷ 2.5 = 40%
3. Fractional Odds (e.g., 3/1)
Implied probability = Denominator ÷ (Numerator + Denominator)
Example: 3/1 → 1 ÷ (3 + 1) = 25%
Estimating payouts without a calculator
If you don’t want to calculate every outcome, here’s a quick way to estimate:
For positive odds, treat it as a multiplier of your stake.→ +200 odds ≈ 2x your bet in profit→ +150 odds = 1.5x your bet in profit
For negative odds, use this shortcut:→ -200 = Bet $200 to win $100→ -110 = Bet $110 to win $100
These aren't precise down to the cent, but they’re accurate enough to help you compare bets quickly and understand the general value you're getting.
Practical Considerations
When calculating payouts, also consider the following factors:
1. Stake amount
Your potential payout is directly proportional to the amount you stake. The higher your bet, the greater your potential payout, but also the higher your risk.
2. Bet types
Different types of bets can affect your payout calculations:
Single Bet: Betting on a single outcome.
Parlay/Accumulator: Combining multiple bets into one. All selections must win for a payout, but the odds multiply, increasing potential payouts significantly.
Each-Way Bet: Common in horse racing, where you bet on a selection to win and to place. This often splits your stake into two separate bets.
3. Bookmaker margins
Bookmakers include a margin in their odds to ensure a profit.
This means the implied probabilities of all possible outcomes typically add up to more than 100%.
This overround or vigorish ensures the bookmaker’s profit margin.
How to get better payouts with line shopping
Line shopping means comparing odds at different sportsbooks to find the best value.
Let’s say one site offers:
Team A at +180But another site offers:
Team A at +200
That 20-point difference may not seem like much, but it means:
You’d earn $200 profit instead of $180 profit on a $100 bet.
Over time, those small differences add up and can seriously improve your total returns.
1. Use the bet slip to see payouts instantly
Almost all sportsbook apps and websites show your potential payout before you place the bet.
Just click or tap on the odds you’re interested in, and the selection moves to your bet slip.
Once you enter a stake amount, your expected return will appear automatically.
2. High payouts don't mean a good bet
It’s tempting to go after bets with huge potential payouts, but bigger profit usually means a lower chance of winning.
For example:
A $100 bet at +800 odds could win $800…
But that +800 underdog probably has less than a 12% chance of winning.
Always balance the risk with the reward.
A safer bet with a smaller return can often be the smarter long-term move.
How do online betting sites payout?
Online betting sites payout winnings by crediting your account balance after a winning bet is settled.
From there, you can either use the funds to place more bets or request a withdrawal.
Here’s how it works step by step:
Winning Bet Settles: After the game or event ends, the sportsbook confirms the result and settles the bet. If you win, your profit (plus your original stake) is added to your account.
Payout Is Automatic: You don’t need to do anything; payouts are automatic once the result is final. This usually takes just a few minutes for common bets, but may take longer for props or disputes.
Withdraw Your Winnings: You can go to the cashier or the withdrawal section to request a payout. Popular methods include:
Bank transfer
PayPal, Venmo, or other e-wallets
Debit cards or prepaid cards
Processing Time Varies
E-wallets: 1–2 days (often faster)
Bank transfers: 2–5 days
Check by mail: up to 2 weeks
Some sportsbooks may require identity verification before large withdrawals, especially for first-time cash-outs.
Final thoughts
Calculating payouts in sports betting is a fundamental skill for any bettor.
By understanding and applying the methods for American, decimal, and fractional odds, you can make informed decisions and manage your betting strategy more effectively.
Remember to consider the implied probability and the type of bet you are placing to maximize your potential returns while managing risk.
Make sure to use a safe and legal sports betting site or app that offers fair odds.
We've written comprehensive guides for both: